2 Towards a greener future
I. SUNREF: AFD’s green finance label
SUNREF (Sustainable Use of Natural Resources and Energy Finance) provides solutions for the new energy and environmental transition by helping private actors in the South to seize its opportunities and encouraging local financial institutions to finance it.
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Video- SUNREF in South Africa
https://www.youtube.com/watch?v=JmRAM2zMqq8&index=9&list=PLWs6yE3bJ-3hMlLzHRY3tsuN5Huh4MqvP
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Energy Efficiency
Cost savings on energy Additional cost savings
Better tolerance to degraded power quality Improved quality of goods / new product lines
Improved image and access to green markets/buyer
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Investments supported: advantages
Renewable Energy
Savings on energy bill or revenue (sales to Utility) or combined Quality of current and independence from Power cuts
New line of business or new business (project development) Development of local resources
Access to Energy in remote areas
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SUNREF East Africa – Partners
Partner banks
Institutional partners
TA & local supports
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Technical Assistance
An integrated approach
Green Credit line
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An innovative partnership for green finance
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The green credit line provides tailored-made debt
Local Banks
Projects Sponsors
Low interest rates / Long tenure / Grace Period / Euros, Dollar & local currency
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Energy Efficiency or Renewable Energy projects The Partner banks choose the project(s)
Private sector projects Max debt <10M$ in Uganda
Max invest no max in Uganda Small and medium size projects wanted
Innovative For EE projects: 15% savings on energy
Quality projects (payback, return, interest for its client)
Long-term partnerships with clients In line with their strategy
Project criteria under SUNREF Project criteria for the bank
Investments supported
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The Technical Assistance provides support in 4 areas
with 70 experts (local and international ones)
Project origination Capacity Building Project bankability Raising awareness
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Process for Project financing through SUNREF
Sponsor looks for a Partner bank
EE audit or Feasibility
Study
TA mobilizes experts
Bank expresses
interest
Banks goes to Credit
Committee
TA releases Certificate of
Technical Eligibility
Project starts
Bank releases go-ahead
Fast-track projects (<300k$ + standard equipment): LEMESI
Project bankability: when the project is deemed mature the TA commissions an expert to carry out the technical due diligence of the project Or…
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Achievements 42 M$ signed by SUNREF East Africa for 58M$ of green investments
Cross sectors: mini-hydro, PV, biomass, biogas, ESCO, Energy Efficiency
Training provided to 35 people and 4 banks
Start of an ESCO providing energy savings to 11 industrial clients to date
Policy advocacy: standard PPA and net-metering policies
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Project Description:
Place: Kenya/Nairobi; type: Renewable Energy project
0,6MW rooftop installation with polycrystalline cells on turnkey contract
European quality standard – 25 years warranty
Benefits for Strathmore University:
Energy bill reduced by 50%
First Carbon Neutral University in Kenya
Demo project for future courses
Improved quality of current
Key financials:
Investment: 1,3M$ - Debt: 1,3M$
Payback: 8,5 years not counting excess energy to be sold to utility
A Solar PV rooftop project / Strathmore University
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Project Description:
Place: Kenya/Sagana; type: Renewable Energy project
0,3MW biogas installation using the waste of avocados
For captive use mainly; excess gas is expected to be compressed and sold to nearby farmers
Benefits for Olivado:
Energy bill reduced by 30%
Expected savings for avoiding dumping the avocado waste of 100k$/year
Improved quality of current / No power cuts
CO2 savings: 1,031 t eq O2/ year (electricity displaced) and more
Key financials:
Investment: 1,7M$ - Debt: 1,5M$
Payback: 8,5 years on energy bill savings only
A Biogas installation for an avocado oil producer / Olivado
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Project description: Place: Kenya / Nairobi ; project type: Energy Efficiency Replacement of boiler, dyeing machine, pressing machine, Retrofit of compressor
Benefits for Alpha Knits: O&M cost reduction 32% (36,5000 USD/ year) Overall savings 378,800 USD/ year 96% of overall savings attributed to energy savings
Key Financials: Investment: 1,12M$ - Debt: 1,12M$ Payback: 3.1 Years
A fabric making company upgrading its equipment / Alpha Knits
..
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Hydropower for self consumption in a tea factory/ GURA / KTDA Project Description:
Place: Kenya / Gura River; type: Renewable Energy project
5,6MW power plant feeding 4 factories
2 x 2,8MW Francis turbines under EPC turnkey contract
Benefits for KTDA
Energy bill reduced by 30%
18GWh/y of electricity produced; no more power cuts
Excess energy sold to the grid
Key financials:
Investment: 15,5M$ - Debt: 10,8M$
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SUNREF Uganda – Status
Green Facility currently available in Uganda: 10M$ through
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SUNREF Uganda – Status
Focal Point contract signed between KAM and UMA in April
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SUNREF Uganda – Status
Partnership with UMA, GIZ and MoEMR to develop the Energy Efficiency sector
Identification of the biggest electricity consumers in the industry
Training sessions given to Energy auditors and Energy Managers
Support to policies
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SUNREF Uganda – Status
More than 30 projects in the portfolio, cross sectors Industries Textile Steel Timber Plastic Cables Etc.
Buildings Hotels Offices Resorts/lodges
Agriculture Fruits/vegetables Flowers Dairy Sugarcane
Solar PV, retrofit of equipment (lighting, A/C, pumps, processing machines, etc.), installation of biomass boilers, solar water pumping, solar water heaters, hydro power projects, biomass / biogas from fruit waste or bagasse, etc.
Transport Tourism
Business Services
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SUNREF Uganda – Status
2 projects have received Certificates from TA, disbursement pending
Boiler replacement for a textile industry: 300k$, estimated payback 1 year Looms + winding equipment replacement for a textile industry: 2,5M$, estimated payback < 4 years
Old air jet loom running at 900RPM requires 14,5 KW New Rapier loom running at 700RPM requires 6,5 KW